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DELL COMPANY BACKGROUND
In 1984, after generating $80,000 revenue per month from upgrading and selling computers out of his dorm room, Michael Dell dropped out of the University of Texas and founded Dell Computer Corporation. The upstart company was pitted against established industry giants such as IBM, Compaq, and Hewlett Packard; but by use of ingenious strategy and revolutionary business models Dell thrived and grew every year. Now they are on top of the US PC market and competitors are scrambling to catch up.
Rather than rest and enjoy their incredible success, Dell now attempts to assess their current situation and take a look to the future. Will competitors try to imitate their strategies? If so, can they be successful? ...from only PC sales and it means that Dell manages only single business and is too risky. We learn that the performance little bit lower at single business, unrelated diversification, but performance is best on the related diversification. Dell's long run competitor is IBM. IBM is around 20%, pretty well diversified. So, to reduce their risk, to increase their overall performance and to compete with IBM in the long run, Dell should diversify their business?
DELL’S MISSION
Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets they serve. In doing so, Dell will meet customer expectations.
What is Dell's business model? How is it different from its competitors?
(1) The Dell model, which relies on direct mail order sales to customers, Dell serviced its customers with combinations of home-based telephone and field-based representatives. Well-trained technical represen ...